US Secretary of State Antony Blinken urges Chinese government to “act responsibly” when dealing with Evergrande crisis

• Antony Blinken urged the Chinese government to handle the Evergrande crisis responsibly.

• Blinken said China’s economic decisions have “deep ramifications” around the world.

• The Chinese real estate developer is the most indebted company in the world, with liabilities exceeding $ 300 billion.

• See more stories on the Insider business page.

US Secretary of State Antony Blinken urged China to act “responsibly” in the face of the fallout from the debt crisis looming with the looming collapse of Evergrande.

“China has to make sovereign economic decisions for itself, but we also know that what China does economically is going to have deep ramifications, profound effects, literally on the whole world because all of our economies are so closely related, “Blinken said Wednesday in an interview with Bloomberg.

Blinken added that Evergrande could have a “major impact” on the Chinese economy and said the United States expects China to “act responsibly and effectively meet all challenges.”

This is the first time a senior Biden administration official has spoken out on the Evergrande crisis since the property developer missed two offshore bond payments in September. The Chinese real estate giant is currently the most indebted company in the world and owes more than $ 300 billion in liabilities. Evergrande’s failure to repay its debt has caused tremors in Asian and international markets. It has also raised fears of potential contagion from mortgage defaulting real estate developers that could spill over into the Chinese market and beyond.

The Evergrande debt crisis is also affecting the US stock market. This week alone, stocks in the United States and global markets fell after the company suspended trading of its shares in Hong Kong.

However, the Chinese government has indicated that a direct bailout from Evergrande is unlikely. Instead, state-linked public companies and property developers are being pushed to buy out Evergrande and divide its assets in a piecemeal fashion.

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